Past audit shows MPS board knew of finance issues; lawmaker calls for federal investigation
MILWAUKEE (CBS 58) -- Less than 24 hours after Milwaukee Public Schools (MPS) board members negotiated a resignation agreement with former Superintendent Keith Posley, a state lawmaker called for a federal investigation into the district's finances.
State Rep. LaKeshia Myers (D-Milwaukee) said Tuesday she wanted the U.S. Department of Education to look into how MPS has handled past funding in light of the revelation MPS is more than eight months overdue on turning audited 2023 financial data over to the state.
"To look at all of the federal funding that we get, to see if there was any mismanagement of those funds," Myers said.
Myers said she did not take issue with Posley receiving $160,000 in severance pay, reasoning Posley likely would have sued had the board fired him, kicking off a potentially costly legal battle.
She did, however, say board members had a responsibility to push for more changes in the district's administration. She said that included the removal of Chief Financial Officer Martha Kreitzman and possibly other members of the finance office.
MPS is at risk of losing millions of dollars in state aid due to late and inaccurate reporting to the state Department of Public Instruction (DPI). Because state officials suspect the most recent data MPS has provided is wrong, it's likely the DPI will offset past overpayments by withholding a "significant" amount of state aid in the 2024-25 allocation.
Board members have said they first learned about the delayed reporting issues in a May 24 letter the DPI sent to Posley and board members. However, a May 2023 audit performed by the accounting firm, Baker Tilly, flagged a pair of familiar issues.
The audit, which was presented to the board's finance and personnel committee in May 2023, said the difficulties encountered were "significant delays" and "unexpected effort to obtain appropriate evidence."
"Yeah, that means that you are not giving over the information that needs to be given to even complete the audit," Myers said.
While DPI officials said they didn't publicize MPS' delayed reporting earlier because it's not unusual for districts to still have incomplete reports by March or April, Myers said she also planned to draft a bill that'd require the DPI to alert the school board and public sooner when a district is behind on providing financial data.
The May 2024 letter noted the DPI had moved to hold monthly meetings with MPS administrators in February, then weekly in mid-March. Many of the speakers at Monday's heated special board hearing said, at that point, the public should've learned about the DPI's increased involvement ahead of the $252 million referendum on April 2.
CBS 58 called all eight current board directors Tuesday. Only one, Missy Zombor, either answered or returned calls. Zombor answered and said she wasn't able to do an interview because she was on her way back to Milwaukee after attending to an urgent family matter.
The board issued a release stating it would hold a press briefing Wednesday afternoon.
At a Washington Park playground Tuesday evening, Anthony Lindsey got frustrated as he learned about both Posley's settlement and the extent of MPS' reporting issues. The 26-year-old lifelong Milwaukee resident and former MPS student questioned whether the issues dated back to his days in school.
"I don't have any kids right now, but I have nieces and nephews and me growing up in MPS schools, also," Lindsey said. "You know, that probably affected me also, you know? It's affecting my nieces and nephews that's outside right now playing, so it's a big deal."